Is it legal to subtract an unauthorized charge on a company credit cardfrom an employee’s paycheck?

We have employees that have company credit cards.

Asked on December 15, 2010 under Employment Labor Law, Michigan


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No.  Generally speaking it is not a legal deduction that an employer can make.  The law may vary in your state and you may want to consult with an accountant to be sure but I would bet that it is the rule there as well.  Instead it may be necessary for you to "bill" the employee for the charges that they have incurred that were not related to doing their job.  Then you may have to re-think your policy on employee credit card use.  Depending on what kind of business that you are there may be different alternatives for you, like opening up accounts at specific businesses, etc.  Good luck

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